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The state Department of Real Estate needs more teeth before it can be an effective watchdog against the type of lax lending practices and outright real estate fraud that led to the recession, according to a state Senate committee.

The Senate Business, Professions and Economic Development Committee will hold an oversight hearing Monday to discuss possible departmental changes – including some prompted by a November 2010 Sacramento Bee investigation showing dozens of accused and sometimes admitted real estate fraudsters were still licensed as brokers or agents.

"Throughout the crisis, significant criticism has been focused upon real estate practices. Recent reports and articles have criticized the Department of Real Estate for its lack of taking action against licensed brokers and salespersons

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